SGI aids economic development
![[SEOUL GUARANTEE INSURANCE]](https://koreajoongangdaily.joins.com/data/photo/2023/03/14/590929de-8650-40e6-a8c1-ee2ed3be580b.jpg)
[SEOUL GUARANTEE INSURANCE]
Seoul Guarantee Insurance (SGI), a full-time guarantee insurance company in Korea, has paved its way with the economic development of Korea.
Guarantee insurance is a system to reduce the credit risk of various transactions as a special type of insurance product that compensates for damage caused by a debtor’s default since it offers economic convenience by supplementing insufficient credit to the debtor and guarantees discharge of an obligation by providing collateral to the creditor.
Established in February 1969, SGI offers a fidelity bond that resolves the difficulties of the employed, contributing to the economic activities of working-class immediately after the establishment of the corporation.
Organizations demanded various deposits to collateralize the fulfillment of contracts as orders for public and private contracts for economic development continue, putting a heavy burden on corporate fund management.
SGI was the first to commercialize the contract bonds that can substitute various contractual deposits to help companies manage their funds, as well as provide easy methods of contact management through its surety insurance.
In the 1980s with the 1988 Seoul Olympics, the demand for automobile purchases surged as the income of Koreans increased. The demand for financial products that could rid the burden of the initial cost of purchasing vehicles grew accordingly.
With the aim to reduce the heavy burden for automobile buyers, SGI offered an installment purchase model of automobiles through its installment sales bond.
BY PARK YE-EUN [park.yeeun@joongang.co.kr]
with the Korea JoongAng Daily
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